If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then
A) he would give up 5 pizzas to get the next salad.
B) he would give up 5 salads to get the next pizza.
C) he will eat five times as much pizza as salad.
D) he will eat five times as much salad as pizza.
B
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Which of the following statements best describes high-income economies’ relationship with inflation?
a. The high-income economies appear to have a political consensus to hold inflation low, but not the economic tools to do so. b. The high-income economies appear to have the economic tools to hold inflation low, but not the political consensus to do so. c. The high-income economies appear to have both a political consensus to hold inflation low, and the economic tools to do so. d. The high-income economies do not appear to have a political consensus to hold inflation low, and the economic tools to do so.
In the classical model, a temporary increase in government purchases causes the new equilibrium to have
A. more employment and a lower real wage than before. B. less employment and a higher real wage than before. C. more employment and a higher real wage than before. D. less employment and a lower real wage than before.
Refer to the information provided in Figure 20.1 below to answer the question(s) that follow.
 Figure 20.1Refer to Figure 20.1. The opportunity cost of producing a bushel of alfalfa in the United States is
A. the same as that in Canada. B. half as much as that in Canada. C. four times as much as that in Canada. D. twice as much as that in Canada.
Although economists generally favor a negative income tax, there is little political support for it
a. True b. False Indicate whether the statement is true or false